Positive Signs As Multiple Insiders Buy Fairfax India Holdings Stock

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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Fairfax India Holdings Corporation's (TSE:FIH.U) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Fairfax India Holdings

Fairfax India Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Brian Bradstreet for US$235k worth of shares, at about US$12.03 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 31.68k shares worth US$393k. But they sold 20.50k shares for US$227k. In total, Fairfax India Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Fairfax India Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Fairfax India Holdings Insiders Buying Or Selling?

There was only a small bit of insider buying, worth US$3.1k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Fairfax India Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Fairfax India Holdings shares, worth about US$8.0m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Fairfax India Holdings Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Fairfax India Holdings insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Fairfax India Holdings that deserve your attention before buying any shares.